General Trend:
- Most of Asia (including China, Hong Kong, Japan) is closed for holiday, most of Europe is also closed
- European markets that are open today include the UK, Denmark and Netherlands
- Apple rises over 4% in after hours trading post earnings, supports Nasdaq Futures
- Australian financials rise as ANZ reported H1 profit growth
- Qantas names new CFO designate
- NZD and bond yields decline on weaker Q1 private wages and employment change
- Australian Manufacturing PMI surveys give conflicting signals in April
- Australia Corelogic House Price Index sees 19th consecutive m/m decline in April, but pace of decline slows
- AUD/NZD seen in focus for next week, RBA due to meet on May 7th (Tuesday) and RBNZ to meet on May 8th (Wed)
- US/China trade talks in focus: There is press speculation that the US may drop demands related to cyber theft in order to speed up trade deal (FT)
- South Korea exports drop for 5th straight month in April, pace of decline slows for chip shipments and exports to China
- Venezuela’s Maduro said a ‘small’ coup had been defeated; Crude Futures decline led by WTI
- US Fed decision expected later today
- On Thursday, China and Japan will be closed for holidays, both countries are also closed on Friday
- US companies expected to report earnings on Wed morning include ADP, Carlyle Group, Clorox, CVS, Estee Lauder, Garmin, Hilton Worldwide, Humana, Johnson Controls, KBR, L-3 Technology , Royal Caribbean, Scotts Miracle-Gro, Spirt Aerosystems, Molson Coors, Willis Towers Watson, YUM! Brands
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- ANZ.AU Reports H1 (A$) Cash profit 3.56B v 3.49B y/y; Rev 9.8B v 9.9B y/y
- GMA.AU Reports Q1 (A$) Net 47.8M v 8.4M y/y, Net premiums earned A$72.9M v A$67.4M y/y; Considering up to 100M share buyback over 1-year period; CEO Georgette Nicholas to retire
- (AU) Australia Apr AIG performance of Manufacturing Index: 54.8 v 51.0 prior (highest since Oct 2018)
- (NZ) Odds of RBNZ rate cut rise after weaker than expected Q1 employment change and private wages data: Markets are now pricing in a 56% chance of rate cut at May 8th meeting v 40% prior – US financial press
- (NZ) New Zealand Debt Management Office (DMO): Proposes new framework to access bond auctions; overall aim relates to support of secondary market liquidity
- (AU) Australia Apr CoreLogic House Price Index M/M: -0.5% v -0.7% prior (19th consecutive decline)
Japan
- Nikkei 225 closed all week for holiday
- (JP) Japan new emperor Naruhito ascends throne: Pledges to carry out duties in accord with constitution
Korea
- Kospi closed for holiday
- (KR) South Korea Apr Trade Balance $4.1B v $3.7Be; Exports Y/Y: -2.0% v -5.9%e; Imports Y/Y: +2.4% v -1.0%e; Q1 semiconductor export volume -12% y/y
- (KR) North Korean First Vice Foreign Minister Choe Son-hui: There could be “unwanted consequences” if Washington does not shift its policy on the North’s denuclearization within this year
- (KR) Bank of Korea (BOK) Gov Lee: expect economy to improve in Q2 2019 – Local Press
China/Hong Kong
- Hang Seng and Shanghai Composite closed for holiday
- (CN) China said to seek to stabilize employment; to spend CNY100B to increase jobs – financial press
- (US) White House drops cyber theft demands in effort to accelerate trade deal with China – FT
- (CN) US Treasury Sec Mnuchin: Confirms meeting with China Vice Premier Liu He on Tuesday night, had ‘nice’ working dinner
- (US) White House Chief of Staff Mulvaney: reiterates US won’t make an agreement with China unless it’s a great deal; These talks can’t go on forever
- (HK) Macau Apr Gaming Rev (MOP) 23.6B v 23.8Be v 25.8B prior; Y/Y: -8.3% v -7.6%e
North America
- (US) Weekly API Oil Inventories: Crude: +6.8M v -3.1M prior
- AAPL Reports Q2 $2.46 v $2.37e, Rev $58B v $57.6Be; Approves added $75B share buyback (8% market cap) and raises Quarterly dividend 5.5% to $0.77 from $0.73 (indicated yield 1.53%)
- Wynn [WYNN]: Massachusetts Gaming Commission to impose $35M fine on the company, will be allowed to retain gambling license
- Nabriva Therapeutics [NBRV]: Receives Complete Response Letter from FDA on NDA for Intravenous CONTEPO (fosfomycin) for injection: CRL requests Nabriva address issues related to facility inspections and manufacturing deficiencies at one of Nabriva’s contract manufacturers prior to the FDA approving the NDA
- McGraw-Hill speculated to plan all-stock merger with Cengage, combined company could be worth ~$5.0B (US financial press)
- (VE) Venezuela President Maduro appears on TV with defense Min Padrino and Socialist Party VP Cabello: Armed forces defeated a small coup, coup plans come from US and Colombia
- (US) Pres Trump: Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening
- (US) Special Counsel Mueller reportedly said that AG Barr’s summary of his report did not fully capture the context, nature and substance of investigation – press
- (US) US Senators including Grassley (Senate Finance Committee Chair) said to plan to meet on Thursday to discuss trade – US financial press
Europe
- (UK) Apr BRC Shop Price Index: Y/Y 0.4% v 0.9% prior (first decline in 6 months)
- (CN) Former UK PM David Cameron said to miss target for planned $1.0B Chinaa related fund, notes tepid interest among potential investors and Brexit-related uncertainty – FT
Levels as of 1:20 ET
- Nikkei 225, closed, ASX 200 +0.8%, Hang Seng closed; Shanghai Composite closed; Kospi closed
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.7%, Dax closed; FTSE100 +0.4%
- EUR 1.1223-1.1211 ; JPY 111.50-111.32 ; AUD 0.7057-0.7034 ;NZD 0.6683-0.6627
- Gold -0.3% at $1,281/oz; Crude Oil -0.9% at $63.30/brl; Copper +0.1% at $2.910/lb
